Ijaz Hossain Chemical Engineering Department, BUET Presented at: Roundtable on Energy – Future of Bangladesh-Korea Cooperation in Energy and Power Westin Hotel, Gulshan 3 rd December 2009

Physical UnitsEnergy Units(%)% of Fossil Natural Gas601 BCF595 million GJ Oil3.8 million Tons162 million GJ Coal3 million Tons83 million GJ Hydro1.0 TWh-- Biomass51 million Tons688 million GJ45.0 Solar PV (w-p)30 MW (44 GWh)-- Wind1 MW (2 GWh)--

TotalOperationalRemarks Generation5500 MW4000 MW90% gas based Captive1200 MW 98% gas based Refineries111.5 million Tons/year Gas Fields 23 Not Prod. – 4 17 Suspend – 2 Reserves – 20.6 TCF (8.5 consumed) Resources – 28 TCF (mean) Coal Fields 5 Undevel. – 4 1 Reserves – million Tons Resources – 2715 million Tons Trans (Gas)1856 km 90% in the eastern region Severe limitation in most areas Trans (Elec) 7044 kmConcentrated in eastern region Severe bottleneck in most areas

ItemMkWh(%) BPDB Gross Generation (MkWh)16431 Station’s Own Use (MkWh)9826.0of GROSS Gen. BPDB Net Generation (MkWh) of NET Gen. IPP Net Generation (MkWh) of NET Gen. RPP Net Generation (MkWh) of NET Gen. Total Net Generation (MkWh)25510

POWER PLANTSELECTRICITY GENERATED IPPs have nearly 800 MW of CCGTs IPPs mainly supply baseload power

Gas Turbines Baseload/Peaking

Because of electricity shortage and unreliable power supply, gas utility started allowing captive power generation about 10 years back MW is now in Captive Generation 25% of the gas for power is consumed by this sub-sector Plant efficiencies are typically around 30-32% Waste heat is not utilized Ideal opportunity for cogeneration Captive Power Generation

Planned Growth of Power Generation

Planned Growth of Distribution Lines

Planned Growth of Transmission Lines

NATURAL GAS: Demand: 2250 MMcfd Production: 1950 MMcfd IOCs: 950 MMcfd Shortfall: 300 MMcfd FY 2009: 650 Bcf R/P Ratio = 18.5 years Resources: 28 – 42 Tcf

Short-Term Gas Projection (Bcf)

Coal: Estimated, Proven and Recoverable Reserves COAL FIELD (year of discovery) Estimated reserve (million Tons) Proven reserve (million Tons) Recoverable reserve (million Tons) Jamalganj, Joypurhut (1962) Barapukuria, Parbatipur, Dinajpur (1985) Khalashpir, Pirgoanj, Rangpur (1995) Dighipara, Nababganj, Dinajpur (1995) Fulbari, Dinajpur (1997)450 Total coal

Opportunities in Electricity Sector Sub-sectorPotentialRemarks Generation Rehabilitation New CCGT baseload New Steam Thermal New Peaking Transmission Rehabilitation New Lines expansion Distribution Rehabilitation New Lines expansion > 2000 MW > 1000 MW > 20% > 2000 km > 30% > 40,000 km Steam baseload and gas turbines as PPP Old plants shut down or NEW GAS Coal based: imported or domestic Replacement of old or new plants Lines that have exceeded service life Present need and new power plants Rehabilitate overloaded feeders Govt. expansion plan (e.g., Purbachal)

Private Participation of the Power Sector Policy Guideline, 2008  Set up Commercial Power Plants (i) to supply electricity to Large Consumers on mutually negotiated tariffs; and (ii) to supply electricity to the Distribution Licensees at tariffs determined by the Bangladesh Energy Regulatory Commission (BERC);  Use transmission and distribution lines of Power Grid Company of Bangladesh (PGCB) and Distribution Licensees on a non-discriminatory basis for wheeling of power produced in their existing as well as new Commercial Power Plants;  Rehabilitate Old and Inefficient Power Plants owned by the Public Sector Power Utilities on Rehabilitate, Own and Operate (ROO) or Rehabilitate, Operate and Transfer (ROT) model ; and  Develop Joint Venture Power Plants in partnership with Public Sector Power Utilities.

Opportunities in Gas Sector Sub-sectorPotentialRemarks Exploration Offshore Onshore Development Titas, Habiganj Transmission Subsea Pipeline > 10 Blocks > 5 Blocks > 2-3 TCF 28 TCF of resource potential exists: Few blocks disputed (Myanmar/India) Joint venture with BAPEX is easiest 3-D seismic and good reservoir management If offshore discoveries are made

Recommendations – I  Bangladesh builds most new power plants through competitive bidding (through tenders)  Negotiated or Feed-in tariffs system not used  For bilateral Government-to-Government projects, an exception may be made  The easiest way for a bilateral organization to get involved at the present time in power generation is through joint ventures especially for power plant rehabilitation

Recommendations – II  Merchant power plants can be built and electricity wheeled using the OPEN ACCESS policy  Large customers or export processing/industrial zones can be supplied  Government will not provide primary energy  No restriction on tariff  Coal from either India or Indonesia/Australia can be considered as fuel

Recommendations – III For natural gas exploration :  Completive bidding for blocks is the preferred option  If Korean companies are willing to accept a NO-EXPORT clause, then blocks can be awarded quite easily to them  Joint ventures with BAPEX: Since BAPEX does not have offshore capabilities, a suitable partner may be able to utilize the joint venture option to bypass the bidding for blocks  Financial and technical assistance to implement Good Reservoir Management Practices especially for the large TITAS and HABIGANJ gas fields can be explored

Recommendations – IV Coal Development:  New underground mining  Coal-bed methane extraction  Infrastructure for using imported coal  Deep sea port to handle coal import  Inland transport (railway network expansion)  Storage facilities

Thank You